Berkley Bank has $650 000 of 8% debenture bonds outstanding The bonds were issued at 101 in 2018 and mature in 2038 The bonds have annual interest payments Read the requirements Requirement 1. How much cash did Berkley Bank receive when it issued these bonds? Berkley Bank received $ at bond issuance Requirement 2. How much cash in total will Berkley Bank pay the bondholders through the maturity date of the bonds? Berkley Bank will pay the bondholders $ through the maturity date of the bonds Requirement 3. Calculate the difference between your answers to requirements 1 and 2 This difference represents Berkley Bank's total interest expense over the life of the bonds The difference between your answers to requirements and 2$ Requirement 4. Compute Berkley Bank's annual interest expense using the straight line amortization method Multiply this amount by 20. Your 20-year total should be the same as your answer to requirement 3 Berkley Bank's annual interest expense using the straight line amortization method is $ Multiply the annual interest expense by 20 The 20 year straight line interest fotalis Is your 20 yeur total the same as your answer loroquiremont 32 - X i Requirements 1. How much cash did Berkley Bank receive when it issued these bonds? 2. How much cash in total will Berkley Bank pay the bondholders through the maturity date of the bonds? 3. Calculate the difference between your answers to requirements 1 and 2. This difference represents Berkley Bank's total interest expense over the life of the bonds. 4. Compute Berkley Bank's annual interest expense using the straight-line amortization method. Multiply this amount by 20. Your 20-year total should be the same as your answer to requirement 3. Print Done a